New York City to ban firms from using subscription traps, officials say
The rule requires clear subscription terms and same-method cancellations, and officials say it could save New Yorkers up to $162.5 million a year.
- On Friday, New York City Mayor Zohran Mamdani announced a "Click to Cancel" rule requiring businesses to make subscription cancellations as easy as sign-ups, effective October 1.
- Mamdani signed executive orders in January targeting deceptive subscription practices and "Junk Fees," positioning the rule as central to his affordability agenda aimed at protecting working people.
- Businesses must allow cancellation through the same enrollment method, with penalties starting at $525 per violation; the Roosevelt Institute projects annual savings of $162.5 million for New Yorkers.
- Enforcement begins October 1, with DCWP Commissioner Samuel Levine stating residents can report violations by calling 311; at least nine states have already enacted similar protections.
- The city is also proposing a "Junk Fees" rule requiring transparent upfront pricing, while a prior national "Click to Cancel" rule introduced by Former President Joe Biden's administration was struck down by federal courts.
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New Yorkers Get Click-to-Cancel Rule
From October 1, companies will also need to provide customers with a straightforward cancellation process via the same method they signed up with. In addition, companies will be unable to ask customers to pay to ship items that were given to them for free.
New York Mayor Zohran Mayor brings back 'Click-To-Cancel' rule that Comcast, Disney, Warner Bros and many other companies sued FTC over months ago
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Mamdani insider Sam Levine oversees all workers and consumers in New York City.Corrie Aune for BISam Levine can't stand a ripoff.He's New York City's millennial commissioner of Consumer and Worker Protection. The former lawyer — who worked under Lina Khan at the Federal Trade Commission — said he didn't hesitate to file a complaint with the department this spring when CVS sent him an expired coupon. And he thinks it's ludicrous that his halal gu…
NYC Mayor Zohran Mamdani Announces Deceptive Subscription Traps Ban
Source: Anadolu / Getty New York City Mayor Zohran Mamdani has already spent his short time in office giving his constituents what they voted for, and making New Yorkers — and anyone else who doesn’t hate Muslims, loathe immigrants and think “tax the rich” is a racial slur against billionaires — proud. Not only is Mamdani out here pushing policies for universal child care, affordable housing, and raising taxes for the uber-wealthy, and even voic…
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